Division of Workforce Development and Adult Learning

Maryland continued to see positive signs of job creation in May. The number of seasonally adjusted jobs on
statewide industry payrolls advanced for the third consecutive month, rising by 11,200 between April and May.

The hiring of temporary census workers fueled the monthly expansion, with the upturn on federal payrolls
accounting for nearly 60% of May’s business payroll advance.

While job generation trailed in the private sector, employment either stabilized or moved ahead in all major
industry sectors with the exception of education and health services where employment dropped off by about 1,700
jobs in May. Even with this decline, employment in this sector remains about 1.5% higher than last year.

The leisure and hospitality industry, led by strong gains in accommodation and food services, was the
largest private sector job contributor in May, followed by construction where a monthly gain of 1,700 jobs was
reported. The construction industry appears to have finally turned the corner. Employment in this sector has
risen without interruption in recent months, gaining 9,300 jobs since February.

Growth on Maryland business payrolls has outpaced national expansion. Since January, the statewide business
base has grown by nearly 38,000 jobs, or by 1.5% – an expansion rate doubling that of 0.7% recorded nationally.

The number of unemployed Marylanders declined by nearly 6,100 persons over-the-month, helping to lower the
seasonally adjusted unemployment rate from 7.5% in April to 7.2% in May – the lowest unemployment rate since
August 2009.

The pace of layoff activity also appears to be waning. During May, the number of unemployment claims filings
fell for the fifth consecutive month to a level of 25,997 – 15.5% below filings of a year ago and the lowest
number of filings since September 2008.

Seasonally Adjusted Unemployment Rates
Maryland and US
May 2009 through May 2010

MD

US

May 09

7.0%

9.4%

June

7.1%

9.5%

July

7.2%

9.4%

Aug

7.2%

9.7%

Sept

7.3%

9.8%

Oct

7.3%

10.1%

Nov

7.3%

10.0%

Dec

7.4%

10.0%

Jan 10

7.5%

9.7%

Feb

7.7%

9.7%

Mar

7.7%

9.7%

Apr

7.5%

9.9%

May

7.2%

9.7%

At the local level, monthly unemployment movements were mixed. In several jurisdictions, labor force
expansion outpaced employment gains, causing unemployment rates to rise. Thirteen jurisdictions reported
rising joblessness, the largest of which occurred in Baltimore City where unemployment once again moved into
double-digits. Unemployment rates in Howard, Montgomery, Calvert and St Mary’s counties were among the
lowest in May; Baltimore City and Dorchester County shared the statewide high at 10.1%.